Wednesday, April 24, 2024

Solid earnings drive US stocks further into record heights

by Associated Press

Stocks rose in morning trading on Wall Street Tuesday and pushed major indexes further into record heights as investors review mostly solid company earnings.

The S&P 500 index rose 0.6% as of 10:28 a.m. Eastern and is hovering just above the record high it set on Monday. The Dow Jones Industrial Average rose 127 points, or 0.4%, to 35,870 and is also just above its record high. The Nasdaq rose 0.9%.

Technology stocks did much of the heavy lifting for the broader market. A mix of companies that rely on consumer spending for goods and services also made solid gains. Health care stocks lagged the market.

Bond yields rose. The yield on the 10-year Treasury rose to 1.65% from 1.63% late Monday.

Solid earnings reports helped lift several major companies. UPS jumped 7.3% as higher shipping rates helped the package delivery service easily beat analyst’s third-quarter profit forecasts. Hasbro rose 5.7% after the maker of Transformers, My Little Pony and other toys reported solid financial results.

Stocks have been pushing broadly higher as companies turn in much stronger profit reports for the summer than analysts had expected. Wall Street is still concerned about how much of an impact supply chain problems will have on a wide range of industries. Many companies have already warned about higher costs cutting into operations.

Paint maker Sherwin-Williams was little changed after its latest results revealed that higher raw materials costs crimped its finances.

Microsoft and Google’s parent company, Alphabet, will report their own results after the closing bell Monday, along with Twitter. European markets were higher and Asian markets closed mixed.

Investors still have a busy week of corporate earnings ahead. Airplane maker Boeing and beverage company Coca-Cola will report their results on Wednesday.

General Motors and Ford will also release their results on Wednesday. The reports could help give investors a clearer picture of how the auto industry is dealing with supply chain problems, including a microchip shortage that has been weighing on auto production.

Apple and Amazon will report on Thursday. The companies, along with Microsoft and Google, are the four biggest companies on Wall Street by market value and their stock movements have a huge effect on the S&P 500.

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